Appendix D to Part 515 - Ocean Transportation Intermediary (OTI) Group Bond Form [FMC-69]
46:9.0.1.2.10.7.1.1.11 : Appendix D
Appendix D to Part 515 - Ocean Transportation Intermediary (OTI)
Group Bond Form [FMC-69]
Form FMC-69 Federal Maritime
Commission
Ocean Transportation Intermediary (OTI) Group Supplemental
Coverage Bond Form (Shipping Act of 1984 (46 U.S.C. 40101-41309))
(Shipping Act).
__ [indicate whether NVOCC or Freight Forwarder], as Principal
(hereinafter “Principal”), and __ as Surety (hereinafter “Surety”)
are held and firmly bound unto the United States of America in the
sum of $__ for the payment of which sum we bind ourselves, our
heirs, executors, administrators, successors and assigns, jointly
and severally.
Whereas, (Principal) __ operates as a group or association of
OTIs in the waterborne foreign commerce of the United States and
pursuant to section 19 of the Shipping Act of 1984 (46 U.S.C.
40901-40904), files this bond with the Federal Maritime
Commission;
Whereas, this group bond is written to ensure compliance by the
OTIs, enumerated in Appendix A of this bond, with section 19 of the
Shipping Act (46 U.S.C. 40901-40904), and the rules and regulations
of the Federal Maritime Commission relating to evidence of
financial responsibility for OTIs (46 CFR part 515), this group
bond shall be available to pay any judgment obtained or any
settlement made pursuant to a claim under 46 CFR 515.23 for damages
against such OTIs arising from OTI transportation-related
activities under the Shipping Act, or order for reparations issued
pursuant to section 11 of the Shipping Act (46 U.S.C. 41301-41302,
41305-41307(a)), or any penalty assessed against one or more OTI
members pursuant to section 13 of the Shipping Act (46 U.S.C.
41107-41109); provided, however, that the Surety's obligation for a
group or association of OTIs shall extend only to such damages,
reparations or penalties described herein as are not covered by
another surety bond, insurance policy or guaranty held by the
OTI(s) against which a claim or final judgment has been brought and
that Surety's total obligation hereunder shall not exceed the
amount per OTI provided for in 46 CFR 515.21 or the amount per
group or association of OTIs provided for in 46 CFR 515.21 in
aggregate.
Now, therefore, the conditions of this obligation are that the
penalty amount of this bond shall be available to pay any judgment
obtained or any settlement made pursuant to a claim under 46 CFR
515.23 against the OTIs enumerated in Appendix A of this bond for
damages arising from any or all of the identified OTIs'
transportation-related activities under the Shipping Act (46 U.S.C.
40101-41309), or order for reparations issued pursuant to section
11 of the Shipping Act (46 U.S.C. 41301-41302, 41305-41307(a)), or
any penalty assessed pursuant to section 13 of the Shipping Act (46
U.S.C. 41107-41109), that are not covered by the identified OTIs'
individual insurance policy(ies), guaranty(ies) or surety
bond(s).
This group bond shall inure to the benefit of any and all
persons who have obtained a judgment or made a settlement pursuant
to a claim under 46 CFR 515.23 for damages against any or all of
the OTIs identified in Appendix A not covered by said OTIs'
insurance policy(ies), guaranty(ies) or surety bond(s) arising from
said OTIs' transportation-related activities under the Shipping
Act, or order for reparation issued pursuant to section 11 of the
Shipping Act, and to the benefit of the Federal Maritime Commission
for any penalty assessed against said OTIs pursuant to section 13
of the Shipping Act (46 U.S.C. 41107-41109). However, the bond
shall not apply to shipments of used household goods and personal
effects for the account of the Department of Defense or the account
of federal civilian executive agencies shipping under the
International Household Goods Program administered by the General
Services Administration.
The Surety consents to be sued directly in respect of any bona
fide claim owed by any or all of the OTIs identified in Appendix A
for damages, reparations or penalties arising from the
transportation-related activities under the Shipping Act of the
OTIs in the event that such legal liability has not been discharged
by the OTIs or Surety after a claimant has obtained a final
judgment (after appeal, if any) against the OTIs from a United
States Federal or State Court of competent jurisdiction and has
complied with the procedures for collecting on such a judgment
pursuant to 46 CFR 515.23, the Federal Maritime Commission, or
where all parties and claimants otherwise mutually consent, from a
foreign court, or where such claimant has become entitled to
payment of a specified sum by virtue of a compromise settlement
agreement made with the OTI(s) and/or Surety pursuant to 46 CFR
515.23, whereby, upon payment of the agreed sum, the Surety is to
be fully, irrevocably and unconditionally discharged from all
further liability to such claimant(s).
The liability of the Surety shall not be discharged by any
payment or succession of payments hereunder, unless and until such
payment or payments shall aggregate the penalty of this bond, and
in no event shall the Surety's total obligation hereunder exceed
the amount per member OTI set forth in 46 CFR 515.21, identified in
Appendix A, or the amount per group or association of OTIs set
forth in 46 CFR 515.21, regardless of the number of OTIs, claims or
claimants.
This bond is effective the __, day of __,__ and shall continue
in effect until discharged or terminated as herein provided. The
Principal or the Surety may at any time terminate this bond by mail
or email ([email protected]) written notice to the Director,
Bureau of Certification and Licensing, Federal Maritime Commission,
Washington, DC 20573. Such termination shall become effective
thirty (30) days after receipt of said notice by the Commission.
The Surety shall not be liable for any transportation-related
activities of the OTIs identified in Appendix A as covered by the
Principal after the expiration of the 30-day period, but such
termination shall not affect the liability of the Principal and
Surety for any transportation-related activities occurring prior to
the date when said termination becomes effective.
The Principal or financial responsibility provider will promptly
notify the underwriting Surety in writing and the Director, Bureau
of Certification and Licensing, Federal Maritime Commission,
Washington, DC 20573, by mail or email ([email protected]), of any
additions, deletions or changes to the OTIs enumerated in Appendix
A. In the event of additions to Appendix A, coverage will be
effective upon receipt of such notice, in writing, by the
Commission at its office in Washington, DC. In the event of
deletions to Appendix A, termination of coverage for such OTI(s)
shall become effective 30 days after receipt of written notice by
the Commission. Neither the Principal nor the Surety shall be
liable for any transportation-related activities of the OTI(s)
deleted from Appendix A that occur after the expiration of the
30-day period, but such termination shall not affect the liability
of the Principal and Surety for any transportation-related
activities of said OTI(s) occurring prior to the date when said
termination becomes effective.
The underwriting Surety will promptly notify the Director,
Bureau of Certification and Licensing, Federal Maritime Commission,
Washington, DC 20573, in writing by mail or email
([email protected]), of all claims made, lawsuits filed, judgments
rendered, and payments made against this group bond.
Signed and sealed this __ day of __,
(Please type name of signer under each signature). Individual
Principal or Partner Business Address Individual Principal or
Partner Business Address Individual Principal or Partner Business
Address Trade Name, if Any Corporate Principal Place of
Incorporation Trade Name, if Any Business Address (Affix Corporate
Seal) By Title Principal's Agent for Service of Process (Required
if Principal is not a U.S. Corporation) Agent's Address Corporate
Surety Business Address (Affix Corporate Seal) By Title [80 FR
68738, Nov. 5, 2015; 81 FR 4593, Jan. 27, 2016]